May 12, 1992
CLA-2-58:S:N:N3H:351 874110CATEGORY:CLASSIFICATIONTARIFF NO.: 5810.92.0080; 9802.00.8060
Ms. Gail T. Cumins
Sharretts, Paley, Carter & Blauvelt, P.C. 67 Broad Street
New York, NY 10004RE: The tariff classification of american made raschel knit fabric re-embroidered in the Philippines.
Dear Ms. Cumins:
In your letter dated May 1, 1992, on behalf of Play Knits Inc., you requested a tariff classification ruling.
You have submitted two samples of raschel "lace" fabric as follows: Exhibit 1, the american made fabric before exportation to the Philippines; and Exhibit 2, the same "lace" embroidered in the Philippines with American made cording that outlines the fabric's floral pattern on the face side. No style number or name has been indicated on the sample on in your correspondence. The fabric is made on a raschel machine and has an open-work warp knit construction. We assume that it is made of synthetic man- made fibers, and that it will be imported in widths greater than 30 centimeters. Play Knits sends american made fabric in 100 yard rolls and textile cord to a factory in the Philippines where the fabric is re-embroidered (the cord is sewn onto the fabric with foreign thread). In your letter, you state that before the American cord is sewn onto the "lace", it will be cut into pieces of approximately 10 yards in length, to permit the fabric to be distributed to the operators in the operators in the plant. For an allowance under the assembly provision that you seek, the fabric must be returned to the United States cut to smaller sizes in the Philippines only for the convenience of handling. As presented, it remains fabric in the piece. The re-embroidered fabric will be used by U.S. manufacturers of wearing apparel.
The applicable subheading for the re-embroidered raschel fabric will be 5810.92.0080, Harmonized Tariff Schedule of the United States (HTS), which provides for embroidery in the piece, in strips or in motifs, of man-made fibers, other, other. The rate of duty will be 14 percent ad valorem.
You also stated in your letter that you felt that a duty allowance should be granted to the American made components under subheading 9802.00.80, HTS (formerly item 807.00, TSUS). Re- embroidery is considered an assembly process, and a duty allowance under 9802.00.8060 would be granted for the American made fabric and cord, provided that all of the requirements of the Customs Regulations are met.
The merchandise falls within textile category designation 229. Based upon international textile trade agreements, products assembled in the Philippines are subject to the requirements of a visa and quota restraints in the same manner as they would apply to other imported merchandise.
The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraints Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.
This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.
Sincerely,
Jean F. Maguire
Area Director